REPORT OF THE OIC GENERAL SECRETARIAT ... - COMCEC

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Original: English OIC/COMCEC/29/2013 REPORT OF THE OIC GENERAL SECRETARIAT ON THE IMPLEMENTATION OF THE OIC TEN-YEAR PROGRAMME OF ACTION (TYPOA) SUBMITTED TO THE TWENTY-NINTH SESSION OF THE STANDING COMMITTEE FOR ECONOMIC AND COMMERCIAL COOPERATION OF THE OIC (COMCEC) 18-21 NOVEMBER 2013 ISTANBUL, REPUBLIC OF TURKEY

Transcript of REPORT OF THE OIC GENERAL SECRETARIAT ... - COMCEC

Original: English OIC/COMCEC/29/2013

REPORT

OF

THE OIC GENERAL SECRETARIAT

ON

THE IMPLEMENTATION OF THE OIC TEN-YEAR

PROGRAMME OF ACTION (TYPOA)

SUBMITTED

TO

THE TWENTY-NINTH SESSION OF THE

STANDING COMMITTEE FOR ECONOMIC AND COMMERCIAL

COOPERATION OF THE OIC

(COMCEC)

18-21 NOVEMBER 2013

ISTANBUL, REPUBLIC OF TURKEY

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INDEX

PAGE

NUMBER

CONTENTS SL NO.

3 Introduction …………………………………………………………………

I

4 Cooperation in the Area of Trade…………………………………………...

II

7 Agriculture, Food Security and Rural Development………………………..

III

10 Cooperation in Transportation Sector……………………………………….

IV

12 Tourism Sector Development……………………………………………….

V

13 Cooperation in Financial and Statistical Sectors……………………………

VI

14 Role of Private Sector……………………………………………………….

VII

16 OIC Special Development Programmes…………………………………….

VIII

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Cooperation with Regional Organizations………………………………….. IX

18

Assessment and Recommendations ………………………………………... X

Annex

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I. INTRODUCTION:

1. The General Secretariat has continued to follow-up, and coordinate, the various

operations of the OIC relevant OIC institutions working in the domain of economic cooperation,

in line with the pertinent OIC resolutions, agreements and decisions. This report shall cover the

various outcomes of these coordination efforts, including the series of demarches made by the

General Secretariat with the competent authorities of the OIC member states as well as

international partners towards implementing OIC programmes and projects upon drawing

inspiration from the various feedbacks received in this connection.

2. The major activities covered in the Report include the various intercessions made by the

Secretary-General with a view to obtaining the relevant concession documents required for the

take-off of the TPS-OIC. In the same connection, efforts to ensure that regional economic blocs

participate effectively in the OIC trade facilitation mechanism informed the contacts with such

regional groups as WAEMU, ECOWAS, IGAD, D-8, among others. In addition to the meeting

of regional groups held during the year of this Report, priority attention was also given to the

creation of a Single Window modality among OIC member states, in order to fast-track intra-

OIC trade through non-tariff and administrative mechanisms.

3. During the year under review, interventions under the relevant trade financing and

poverty alleviation funds and programmes were robust, as almost all the targeted funding of

development projects has been deployed as appropriate. The Special Programme for the

Development of Africa (SPDA) has run its full course with effect from 2012 and a successor

programme is being worked out, while the ISFD is also undertaking new projects in the housing

sub-sector. Similarly, new research and development implementation framework is being worked

out with regard to the OIC Cotton Action Plan, while the re-packaging of the West African

regional project on sustainable tourism development has also featured in on-going collaboration

with OIC international partners.

4. In the agricultural sector, member states have been deliberating on the policy framework

document prepared by COMCEC, while projects bearing on capacity-building for agriculture

extension workers are being undertaken with noticeable progress. In addition, activities aimed at

enhancing the role of the Private Sector have also witnessed the convening of a stakeholders’

meeting to work out modalities for the creation of a platform for cooperation among OIC agro-

processing ventures, while contacts are being intensified to ensuring adequate reactions by the

Private Sector to the proposition for establishment of a database for angel capital investors as

well as a network of technology and business incubators. This is in addition to the various trade

promotion activities of the relevant OIC institutions in this domain.

5. In evaluating the extent of successful implementation of the various projects undertaken,

the Report concluded that intervention actions by way of project funding have improved

considerably, while capacity-building programmes are also on the increase. There is, however,

the need to increase capacity-building for project-design among OIC member states, even as

efforts should be intensified to convene investment forums to move most of the projects from the

current elaboration phase to the implementation phase.

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II. COOPERATION IN THE AREA OF TRADE

6. The implementation of the OIC strategy on promotion of intra-OIC trade has continued to

feature prominently in the Organization’s scheme of work. In addition to the on-going activities

on trade promotion, trade financing and export credit insurances, the OIC institutions in the

domain of economic and trade cooperation exerted greater efforts with a view to diversifying

their programmes, adopting and promoting new mechanisms and initiatives to further facilitate

trade exchanges among the Member States. This includes a renewed focus on proposing

programmes and initiatives aimed at removal of non-tariff barriers along with current activities

on harmonization of tariff procedures.

7. Accordingly, the intra-OIC trade continued to grow during the year under review. The

share of intra-OIC trade in the total trade of member states increased from 17.80% in 2011 to

18.21% in 2012. Similarly the intra-OIC trade volume increase from US$ 681.60 billion in 2011

to US$ 742.74 billion in 2012, an increase by 14.4%.

8. In addition to the following traditional activities of OIC General Secretariat, ICDT, IDB,

ITFC, ICIEC, ICD, and ICCI, the regular coordination and evaluation meeting was held among

the OIC institutions on the implementation of various activities in the area of intra-OIC trade

promotion. The Fifth Meeting of Consultative Group for Enhancing Intra-OIC Trade, was held in

Casablanca, Kingdom of Morocco on 27-28 February 2013. Representatives of 10 Member

States, OIC institutions working in the domain of economic cooperation and relevant regional

and international partners participating at the meeting reviewed the implementation of the

Executive Programme of the Road Map for Achieving Intra-OIC Trade Targets. The

presentations and discussions were also focused on developing an evaluation and assessment

modalities for the Executive Programme and the way forward.

9. The Meeting emphasized on the important role of member states in supporting the

implementation of the Executive Programme through their participation in the identified

activities of the Programme and recommended to: (i). invite the major intra-OIC trading member

states including LDCs to participate in the meetings of the Consultative Group Meetings with a

view to contributing to various programs and activities of the Executive Programme; (ii). invite

member states to establish a Trade Finance Support Scheme; (iii). foster implementation of Aid

for Trade (AfT) initiative; (iv). convene a Conference of the OIC Trade Promotion Organs

(TPOs) Network with the main objective of enhancing their role in the implementation of the

Executive Programme; and (v).deliberate and create a monitoring and evaluation framework for

the Executive Programme.

a) Trade Preferential System among the OIC Member States (TPS-OIC)

10. Efforts aimed at securing Member States execution of the multilateral instruments for the

Trade Preferential System of OIC (TPS-OIC) continued to feature prominently in the activities of

the Organization. In line with the demarche to exhort Ministers of Member States on finalization

of participation process in TPS-OIC, the Secretary General addressed specific letters to Ministers

of Bahrain, Cameroon, Djibouti, Guinea, Guinea Bissau, Iran, Kuwait, Maldives, Mauritania,

Morocco, and Nigeria respectively in January 2013.

11. Since 28th

Session of COMCEC on 8-11 October 2012, Sudan, Cote d’Ivoire and Niger

have signed PRETAS and Rules of Origin of TPS-OIC, while Mauritania and Benin signed the

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three TPS-OIC Agreements. Similarly, the General Secretariat received the instruments of

ratifications from The Gambia (on PRETAS), Djibouti (on Framework Agreement), Iran (on

TPS-OIC Rules of Origin), and Morocco (on PRETAS and TPS-OIC Rules of Origin). So far, 30

member states have ratified the Framework Agreement, 16 member states ratified the PRETAS

and 15 member states ratified the TPS-OIC Rules of Origin. The status of signing and ratification

of OIC economic agreements as of 30 June 2013 is annexed to this Report.

12. In this context, Member States, which are yet to complete the signing and ratification

processes of TPS-OIC or forward their lists in line with the relevant provisions of COMCEC

resolutions are requested to do so as early as possible. This includes the submission of their

specific annual installments of reduction along with the list of products (schedules of

concessions), sample of certificates and specimen impression of stamps used in their customs

and to complete internal and legislative and administrative measures.

13. In line with the foregoing, the Trade Negotiating Committee (TNC) needs to convene at

the earliest convenience as soon as the required number of ratifications and lists of concessions

are available, in line with relevant legal requirements.

b) Consultations with Regional Economic Blocs:

14. In line with on-going preoccupation to harmonise the implementation of the OIC tariff

regimes along with those of other regional economic blocs with common membership with OIC,

the General Secretariat has established contacts with Economic Community of Central African

States (ECCAS). In this context, the Secretary General addressed a letter of 2nd

February 2013 to

the Secretary General of the ECCAS together with a briefing on TPS-OIC and proposed the

creation of a joint mechanism to discuss TPS-OIC along with other relevant economic issues.

Similarly, the General Secretariat continued its consultations with West African Economic and

Monetary Union (WAEMU) in this regard. The Secretary General and the President of WAEMU

Commission, during their meeting at the OIC Headquarters in Jeddah on 13 January 2013,

emphasized on the importance of accession of WAEMU countries to TPS-OIC, while the

President of the Commission of WAEMU underscored the need for conducting an impact

assessment of TPS-OIC on the WAEMU countries before the latter could consider joining TPS-

OIC.

Expert Group Meeting on Inter-regional Economic Cooperation

15. To step up the collaborative work with the sub-regional trading blocs in advancing the

implementation of Executive Programme, the IDB Group organized in its Headquarters, on 25-

26 September 2012, the first Expert Group Meeting on Inter-regional Economic Cooperation:

Harnessing Inter-regional Trade Potential through Enhanced Cross-regional Cooperation. In

addition to relevant OIC institutions, representatives of Gulf Cooperation Council (GCC),

Economic Cooperation Organization (ECO), Common Market for Eastern and Southern Africa

(COMESA), League of Arab States (LAS), Arab Maghreb Union (AMU) attended the meeting.

16. The meeting came up with a number of ideas and recommendations such as: (i).

establishing a working group to identify priority sectors and themes for cooperation and sharing

information amongst parties; (ii). encouraging and promoting cooperation between regions in

trade in services and facilitating the cross-regional sharing of knowledge and best practices in

this area; (iii). facilitating private sector cooperation across regions for the promotion of trade

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and investment, and support private sector participation in business for a and trade exhibitions;

(iv). promoting knowledge sharing and technology transfer between regions to harness inter-

regional trade potential; (v). promoting the use of research to tackle joint problems and design

effective trade promotion programmes; and (vi). extending the use of tools and mechanisms of

trade facilitation such as single windows, electronic data exchange and modernized custom

clearance. The meeting requested the IDB and other international and regional financing

institutions to give priority to projects that have the potential of enhancing inter-regional trade

within the OIC and recommended joint resource mobilization efforts across regions in the area of

trade development, especially the regional Aid for Trade (AfT) initiatives.

c) Single Window Initiative for Enhanced Regional Economic Cooperation

17. The OIC High Level Forum on Trade Facilitation and Single Window Initiatives for

Enhanced Regional Economic Cooperation was jointly organized by the Government of

Morocco, ITFC and ICDT in Casablanca, Kingdom of Morocco, on 25-26 February 2013.

Representatives of 25 Member States, relevant international organizations such as United

Nations Economic Commission for Europe (UNECE), United Nations Development Programme

(UNDP), United Nations Conference on Trade and Development (UNCTAD), United Nations

Economic and Social Commission for West Asia (UNESCWA), United Nations Economic

Commission for Africa (UNECA), Arab Bank for Economic Development in Africa (BADEA),

League of Arab States (LAS), West African Economic and Monetary Union (WAEMU), Global

Coalition for Efficient Logistics (GCEL), International Road Transport Union (IRU), and

African Alliance for e-Commerce (AACE) actively participated at the Forum and made

presentations on best practices in the area of Single Window modalities. The Forum reviewed the

ways and means for implementation of Single Window initiative in the OIC Member States.

18. The Forum agreed to set up a task force within the framework of the Consultative Group

for Enhancing intra-OIC trade to study the possibility, and follow up the issue, of the Single

Window initiative in OIC Member States and designated the ICDT and the ITFC as the joint

focal point within the task force, with the participation of General Secretariat of the OIC and

COMCEC, IDB, and relevant international partners such as UNECE and UNCTAD. The task

force will elaborate a roadmap and Terms of Reference (ToR) for the implementation of this

initiative, The recommendation of the Forum includes the proposal that the implementation of

the project could start with those OIC Member States which have signed and ratified the TPS-

OIC and setting up of the OIC Single Window on a sub-regional basis, as a first step towards a

broad based implementation of the project.

d) Trade Financing

19. During the year 2012, the trade approvals of ITFC reached about US$ 4.466 million, as

against US$ 3.033 million in 2011, which represents an increase of 47 percent. Similarly, the

level of disbursements increased by 42% from US$ 2.826 million in 2011 to US$ 3.999 million

in 2012. Therefore, over the 5-year period, ITFC’s support to trade finance in OIC member states

is evidenced by the significant growth in the volume of approvals, which nearly doubled,

reaching US$ 4.5 billion in 2012 up from US$ 2.5 in 2008.

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e) Standards and Metrology:

20. Since its establishment in August 2010, the Standards and Metrology Institute for Islamic

Countries (SMIIC) highly succeeded in completing its infrastructure work and introduced its

dynamic web page. The Membership of the Institute rose significantly from 10 in year 2010 to

23 in year 2013. Having adopted the three documents prepared by the OIC Standardization Expert

Group (SEG) on Halal Standards, the SMIIC has established seven technical committees under

Standardization Department including a committee on Halal Food Issues. The other committees

deal with Halal Cosmetic Issues; Service Site Issues; Renewable Energy; Tourism and Related

Services; Agriculture Process; and Transportation. The Institute also established an independent

SMIIC Accreditation Committee.

21. The SMIIC Forum 2012 was successfully held in Antalya, Republic of Turkey on 6-9

November 2012. The Forum, provided an appropriate platform to bring together national and

international players, within and outside the OIC, in the field of Standardization, Accreditation

and Metrology, in order to promote cooperation and networking among them , particularly

through exchange of experience and knowledge sharing. Over 160 delegates from 35 countries,

regional and international organizations including relevant OIC Institutions, International

Organization for Standardization (ISO), International Electrotechnical Commission

(IEC),European Committee for Electrotechnical Standardization (CENELEC) and International

Laboratory Accreditation Cooperation (ILAC) participated in the Forum.

22. Similarly, the 6th

Board of Directors and 4th

General Assembly meetings of SMIIC,

which was held in Istanbul, Republic of Turkey on 15-17 April 2013, approved the scale of

assessment and annual mandatory contributions of SMIIC members to the Budget of SMIIC.

III. AGRICULTURE, FOOD SECURITY AND RURAL DEVELOPMENT

a) Seventh OIC Ministerial Conference on Food Security and Agricultural Development

23. The Government of the Republic of Senegal has conveyed its inability to host the

Seventh OIC Ministerial Conference on Food Security and Agricultural Development

(MCFSAD), which was scheduled for Dakar, Senegal on 14-16 November 2013 due to

budgetary constraints. To this end, the General Secretariat has notified all member states of the

postponement and requested other OIC member state to consider hosting the said Conference.

b) Establishment of an OIC Food Security institution in Kazakhstan

24. Pursuant to the decisions of the 39th Session of the OIC CFM, which was held in

Djibouti on 15-17 November 2012 , and the 12th Islamic Summit held in Cairo, Egypt on 2-7

February 2013, the Intergovernmental Expert Group Meeting (EGM) to finalize the constituent

instrument of the approved OIC Food Security institution in Kazakhstan was held in Astana,

Republic of Kazakhstan, on 11-13 June 2013. The EGM, which was attended by more than 60

experts from 30 OIC member states, examined and finalized the Draft Statute of the new

specialized institution of OIC on food security. The EGM also adopted a suitable name for the

institution as: Islamic Organisation for Food Security and recommended the Draft Statute for

consideration and adoption by the 40th

Session of Council of Foreign Ministers of OIC.

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25. The Report of the EGM along with the Draft Statute of Islamic Organisation for Food

Security was presented to the 36th

Session of the Islamic Commission for Economic, Social and

Cultural Affairs held in Jeddah, Saudi Arabia on 30 June-2 July 2013. The latter called for more

comments from member states on the Draft Statute before its eventual consideration by the 40th

Session of the CFM, scheduled for Conakry, Republic of Guinea on 9-11 December 2013.

26. It is worth mentioning that IOFS is aimed at enhancing intra-OIC cooperation in the area of

agriculture, rural development and food security. This includes mobilizing and managing

resources for developing agriculture and enhancing the food security; formulating and

implementing common agricultural policies; and monitoring the food security situation in

member states in order to determine and make necessary interventions, among others.

c) OIC Cotton Action Plan

27. Towards the implementation of the OIC Cotton Action Plan (2007-2016), the General

Secretariat has addressed a communication to the Centers of Excellence and the relevant OIC

institutions, identifying the various actions that should be considered in 2013. These actions

include the actualization of the relevant targets of the Plan with regard to the creation of a Cotton

Gene Bank, a Databank on cotton for easy access to information and statistics; and the

development of an exchange system for cotton marketing.

28. The Sixth Steering Committee Meeting on the OIC Cotton Action Plan which was held in

Ankara, Republic of Turkey, on 3 April 2013, reviewed the above mentioned plan for 2013 and

welcomed the willingness of the IDB Group and the UN Office for South-South Cooperation

(UNOSSC) to provide technical support to the project owners to complete necessary

documentation regarding the cotton projects, approved within the framework of OIC Cotton

Action Plan.

29. Having circulated the project on enhancing the productivity of cotton submitted by the

Senegalese Agricultural Research Institute/Development and Textile Fabrics Company

(SODEFITEX), one of the Centers of Excellence for the OIC Cotton Action Plan to relevant

stakeholders, the General Secretariat has received the reaction of the Kuwait Fund for Economic

Development, requesting necessary details to facilitate positive consideration.

30. On its part, the SESRIC has organized, within the framework of its capacity building

programmes, five training courses on agronomy and fiber technology in the cotton sub-sector, in

a number of OIC countries, namely Uganda, Mozambique, Togo and Mali since October 2012.

d) Establishment of an OIC Agro-Food Industries Association

31. Further to earlier reports on this project, the General Secretariat has received submissions

from member states to the draft Statute of the proposed Association and has resubmitted the

latter to member states to guide discussions during the 1st Stakeholders’ Meeting of the proposed

Association held in Muscat, Sultanate of Oman on 14th

May 2013, on the sidelines of the 6th

Exhibition of Agribusiness in OIC member states, Muscat, Sultanate of Oman on 13-16 May

2013.

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32. The Meeting attracted public officials at the level of experts and heads of private

companies working in the field of Agro-food industry and food processing in OIC countries as

well as OIC partners working in this domain. The main objectives of the Association as espoused

in its draft Statute include contribution to increasing OIC member states’ export revenue through

value-added industrial processes; facilitation of intra-OIC trade in OIC processed food; helping

small and medium-sized agro-food producers to penetrate international markets; and building

strong linkages with agro-food support institutions such as banks, vocational and research

institutions, standardizations agencies, farmers’ associations.

33. The Meeting recommended the need to continue the on-going efforts aimed at facilitating

the creation of the Association, including the establishment of an e-mail group among the

stakeholders to enrich the draft Statute and the Plan for future activities. It also recommend the

need to continue to address the critical issues of technology transfer, research and networking

among private sector entities with a view to increasing productivity and competitiveness of the

OIC member states in the field of Agro-Industries and to work closely with the international

partners in the area of agriculture, rural development and food security such as IFAD and FAO.

e) Workshop on “Enhancing the Capacity of the Member States in Wheat Production

34. Pursuant to the resolutions adopted by the 28th

Session of the COMCEC, the delegates

from 11 OIC countries attended the above-named Workshop, organized by Ministry of Food,

Agriculture and Livestock of the Republic of Turkey, in collaboration with COMCEC

Coordination Office, in Izmir, Turkey, on 15-16 January 2013. The objective of the Workshop

was to review the current situation in wheat production and explore possible ways and means to

enhance cooperation among the OIC Member States in this area.

35. The Workshop came up with a number of recommendations, which highlighted the

importance of enhancing institutional and human capacity in the member states for increasing

wheat production and the role of investments in enhancing wheat production through developing

sound policies to encourage investments and develop joint investment programs and projects in

this area, among others. The General Secretariat has circulated the outcome of the Workshop to

all member states and requested them to take due note of its recommendations.

f) Training of Agricultural Extension Experts

36. In line with the relevant resolutions on developing technical capacity in agricultural

sector, the General Secretariat interceded with the Islamic Development Bank, which provided

appropriate funding for the organization of a training workshop for agricultural extension experts

in OIC member states. In this regard, SESRIC, in collaboration with Islamic Development Bank,

organized a training programme for agricultural extension experts in OIC member states in

Izmir, Turkey on 21-24 May 2013. The main objectives of the training programme are to

introduce new techniques and best practices to agricultural extension experts and to identify the

needs and capacities as well as to enhance intra-OIC cooperation in the field of agriculture.

37. During the three-day training programme the agricultural extension experts from 18 OIC

member states deepened their knowledge on innovative agricultural extension and consultancy

applications, agricultural extension methods and techniques and international and public-private

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cooperation on agricultural extension. They also visited Agricultural Extension and In-Service

Training Centre (TAYEM) in Aydin, Turkey.

38. At the end of programme the experts came up with a set of recommendations, which

highlighted the importance of: institutional capacity, technology and research efficiency;

improvement of short-term vocational courses and informal educational opportunities; Information

and Communication Technologies (ICT) in agricultural extension through the establishment of a

nation-wide and systematic Geographical Information Systems (GIS); the research-extension-farmer

linkage among the national agricultural research institutions, universities, NGOs, private sector and

farmers; and projects encouraging women entrepreneurship with emphasis on improving

employment of women in rural areas; among others.

IV. COOPERATION IN TRANSPORTATION SECTOR

OIC Dakar-Port Sudan Railway Project

39. Within the framework of the consultations between OIC and African Union (AU) on the

implementation of the OIC Dakar-Port Sudan Railway Project, IDB participated at the

Validation Workshop on the Final Report of Pre-Feasibility Studies on the Missing Links on the

AU/NEPAD Dakar - Djibouti corridor, which was held in Djibouti on 18-19 December 2012.

The Workshop noted the completion of the pre-feasibility studies of the above corridor and

recognized the need to move quickly to the next implementation stages. It also urged the

participating countries to include the missing links in their national development programmes.

40. The General Secretariat has obtained the full version of the Pre-Feasibility Study on the

Missing Links of Dakar - Djibouti and transmitted the same to OIC member states and

development partners/institutions. The General Secretariat also requested the OIC member states

and development partners/institutions to consider possibility of extending technical and funding

support to OIC project-owners in the elaboration of feasibility studies of their national segments

along the proposed OIC Dakar-Port Sudan Railway line.

41. In this context, it is worth mentioning that the Pre-Feasibility Study focused on the

feasibility of the missing links of the Dakar Djibouti Transport Corridor with its both road and

rail components. The Study examined the technical-economic characteristics and performance of

the existing railways and assessed the feasibility of constructing railway missing links of Dakar

Djibouti corridor. The Study also proposed two alternative routes for constructing railway

missing links of Dakar Djibouti corridor in standard gauge as well as estimated cost of upgrading

the existing railway networks to standard gauge.

42. In view of the foregoing, the Study recommended moving to the completion of missing

links’ conceptual design studies. It also recommended creating and putting in place national

committees comprising officials from various concerned institutions in the transport sector for

monitoring and evaluation of the planned activities’ implementation. Furthermore, it emphasized

the crucial role of the regional economic communities crossed by the corridor, namely

ECOWAS, ECCAS, COMESA and IGAD in consolidating efforts of the concerned countries

and development partners in this regard.

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43. In view of the fore-going, a Time Table is being worked out with all stakeholders,

including IDB, African Union and New Partnership for Africa’s Development (NEPAD) to

develop the various segments on the Dakar-Port Sudan rail corridor in the following manner:

Preparation and Submission of projects to potential donors by June 2014; and

Organization of Stakeholders’ Conference during the second half of 2014.

44. In this regard, participating OIC member states are being sensitized on the need to

commence national actions in line with the Time Table.

45. In a related development the General Secretariat has reached an understanding with the

United Nations’ Office for South-South Cooperation on the extension of necessary technical and

consultancy support through its Global Assets and Technology Exchange (SS-GATE) to needy

project-owners among OIC member states during the implementation phase of the Dakar-Port

Sudan Railway Project. This support would be in the form of assistance to OIC member states in

packaging their respective projects for their segments along the proposed transport corridor.

Such action would facilitate the mobilization of funds from OIC traditional partners.

11th

Transportation, Maritime Affairs and Communications Forum

46. The General Secretariat attended the 11th

Transportation, Maritime Affairs and

Communications Forum, which was held in Istanbul, Turkey on 5-7 September 2013 under the

auspices of the Turkish Ministry of Transport, Maritime Affairs and Communications. This event

provided a good platform to apprise the participants on the on-going activities of the OIC in the

area of transportation and communications. Furthermore, OIC interventions at the Forum

focused on the need to support the current approach of the OIC on building wider partnerships

for the implementation of its transportation and infrastructure projects.

V. TOURISM SECTOR DEVELOPMENT

a) Regional Project on Sustainable Development of Tourism in a Cross-Border Network

of Parks and Protected Areas in West Africa

47. In an effort to proceed to the implementation phase of the project, the General Secretariat

has repeatedly called on participating Member States to submit details on their respective

segments of the Project to facilitate mobilization of funds for their implementation. Essentially,

Member States were urged to submit the re-packaged projects expeditiously and report on the

status of implementation of other recommendations of earlier Donor’s Conference, including the

following:

- The need for the participating member states to prioritize the project in their

development plans and provide for an allocation of internal resources for the

launching of activities identified in their national territory;

- The recommendation for the participating member States to build the capacity

of National Focal Points (NFPs) in order to implement this project;

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- The need for the participating member states to explore ways and means for a

greater involvement of the private sector in the management of parks and

protected areas.

48. In the light of the recent commitment given by UN Office for South-South Cooperation

(UNOSSC) on the possibility of assisting project owners in OIC member states to carry out this

re-modeling of the projects, the General Secretariat is reverting to participating member states

and the partner UN institution, UNWTO on the way forward for the speedy implementation of

the project.

b) 1st Meeting of the OIC/COMCEC Private Sector Tourism Forum

49. The General Secretariat participated in the 1st Meeting of the OIC/COMCEC Private

Sector Tourism Forum held in Izmir, Republic of Turkey 7-8 December 2012. The meeting

succeeded in addressing the policies, strategies and tools underpinning sustainable and

community based tourism in the world and the OIC region. This was achieved through

presentation of specialized papers by both UNDP and SESRIC and through presentation of

model projects in this field by Member States such as Turkey and Malaysia. Emphasis was also

placed on the importance of developing joint tour and marketing programmes among OIC

Member States.

50. While the Meeting provided the required platform for public and private sector agencies

working in the field of tourism to exchange ideas and experiences, few Member States

participated owing to the short notice given by the organizers. In this connection, the General

Secretariat has undertaken to compile and share its database on Private Sector establishments

among OIC Member States, so as to facilitate more inclusive participation in such activities.

c) 3rd

Conference on Health Tourism in Islamic Countries (CHTIC) – Recast as

discussed.

51. The General Secretariat participated in 3rd

Conference on Health-Tourism in Islamic

Countries (CHTIC) held in Mashhad, Islamic Republic of Iran- 18-19 December 2012. The

meeting was able to highlight the enormous potential of OIC Member States in the field of health

tourism and its role in spurring sustainable economic growth among countries.

52. The meeting resolved, among other things, to establish an open-ended expert committee

comprising of the OIC Member States to explore possibilities for an OIC Accreditation System -

taking into account national accreditation systems- so as to facilitate this important branch of the

service sector. It also called upon the insurance companies and authorities to devise means and

ways of mutual collaboration in providing joint medical insurance services to boost health

tourism among OIC Member States.

d) The forthcoming 8th

Conference of Tourism Ministers (ICTM)

53. Following a communication from the Government of the Sudan that it has stood down its

earlier offer to host the 8th

OIC Conference of Tourism Ministers, the General Secretariat

requested member states to volunteer to host the said session. Consequently, the next session of

this Conference will be held in Banjul, The Gambia on 3-5 December 2013.

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54. The agenda of the session will feature, among others, consideration of the report of the

3rd

coordination Committee meeting for the implementation of the framework for development

and cooperation in the domain of tourism among OIC member states; the mechanism and criteria

for the selection of OIC city of tourism and the proposal by the Islamic Republic of Iran on the

establishment of “the Heritage Centre for Islamic Countries. Invitations and other related

documents have already been dispatched to member states and relevant institutions.

VI. COOPERATION IN FINANCIAL AND STATISTICAL SECTORS

a) Promotion of social finances

55. The General Secretariat continues to interface with its institutions and other partners with

a view of devising ways and means of mainstreaming the cooperation in the financial sector

among Member States. In this connection, the General Secretariat is exploring with the Islamic

Research and Training Institute (IRTI) modalities for sharing best practices among OIC member

states for promotion of traditional social finance, namely: the institutions of Zakat and Awqaf,

thereby making them part of the broader framework of financial sector reforms in OIC member

states.

56. Similarly, the intensification of contacts with national stakeholders and institutions for

the implementation of this cooperation framework informed recent demarches with King

Abdulaziz University Jeddah, an institution that is closely involved in the organization of the

past eight International Conferences on Islamic Economics and Finance (ICIEF). The 9th

edition

of ICIEF was held in Istanbul, Republic of Turkey on 9-11 September 2013,, under the theme

“Growth, Equity and Stability: An Islamic Perspective”. Hosted by the Government of Turkey,

the Conference was co-organized by King Abdul Aziz University, Jeddah, Saudi Arabia, the IDB

and SESRIC. The Conference provided a platform for dialogue and discussions among

policymakers, academics, researchers, graduate students, and practitioners and dwelt on the

problems of inclusive economic growth and macroeconomic stability from the perspective of the

Islamic Economics and Finance discipline.

57. In the same connection, the General Secretariat continues to attend and follow-up on the

outcome of the OIC Meetings of Central Banks and Monetary Authorities of the OIC Member

States whose sessions for 2013 and 2014 will be held in the Kingdom of Saudi Arabia and the

Republic of Indonesia respectively. It is giving due visibility to the activities of the OIC Stock-

Exchange Forum as well as those of the COMCEC Capital Markets Regulators’ Forum in its

coverage of OIC events; much as it continues to encourage relevant authorities in Member

States to partake in the various capacity building programmes organized by SESRIC in this

domain.

b) Third Session of the OIC Statistical Commission

58. The Third Session of the OIC Statistical Commission was co-organized by SESRIC and

IDB in Ankara, Turkey, on 10-12 April 2013. The meeting renewed the term of office of the

current members of the Bureau of the OIC-StatCom for another term covering 2013-2014.

Thereafter, the meeting reviewed the reports of the five Technical Committees of Experts on

their activities on: 1) Islamic Banking and Finance Statistics; 2) Executive Work Plan (EWP) for

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the Short, Medium and Long Term Implementation of the OIC-StatCom Strategic Vision; 3)

Procedural Details of Accreditation Programme for Statistical Professionals in OIC member

states; 4) Gender Related Issues; and 5) Population Census Experiences and Practices of OIC

member states. It also received presentations by country delegations and international

organisations on labour statistics; open data initiative; role of NSO in measuring progress with

regard to Millennium Development Goals (MDGs) and Sustainable Development Goals (SDGs).

59. Following the review of reports of Technical Committees of Experts and presentations,

the discussions dwelt on the need to put more emphasis on implementation of the decisions of

OIC-StatCom, through enhancing networking among NSOs and the effective use of available

resources. Considerable emphasis was placed on the need to actualize the Strategic Vision of the

OIC-StatCom as well as to address the issue of building capacities of NSOs to produce requisite

data and statistics. At the end of its proceedings, the meeting made decisions on each item of the

agenda.

VII. ROLE OF PRIVATE SECTOR

60. The General Secretariat has continued to interface with ICCIA and other relevant

institutions within its consistent efforts to mainstream the role of the Private Sector in the

activities of the OIC. The creation of a network of Business and Technology Incubation Centers;

as well as a database of Business Angel Investors in OIC member states are informed by the

need to support youth employment, which is a major component of the OIC poverty alleviation

strategies.

61. Other programmes involving the Private Sector is the proposed establishment of an OIC

Agro-Food Industries Association, which is aimed at bringing together both Private and Public

stakeholders for the promotion of agro-industries, within a value-chain approach to agricultural

development and food security. In this context, the 1st Stakeholders’ Meeting on establishing

proposed Association in this regard was held in Muscat, Sultanate of Oman on 14th

May 2013,

on the sidelines of the 6th

Exhibition of Agribusiness in OIC member states, Muscat, Sultanate of

Oman on 13-16 May 2013. The Meeting took note of the draft Statute of the Agro-Food

Industries Association and expressed its appreciation to the member states which were able to

give their valuable comments and feed-back on the draft and other correspondences concerning

the matter.

62. As a major representative of the private sector, the activities of ICCIA featured

prominently capacity building, entrepreneurship development, value addition, and support for

SMEs in OIC member states. The ICCIA is also working in collaboration with relevant

Institutions in the area of promoting Halal products, as well as related issues of ethics and quality

control. The projects of the Islamic Chamber cover diverse sectors, however the ultimate focus

of each being to promote greater economic cooperation among the OIC Countries, through the

private sector.

63. The Islamic Chamber of Commerce, Industry and Agriculture (ICCIA) held its 16th

Board of Directors and the 29th

General Assembly meeting in Doha, Qatar from 24 -25 April

2013, during which H.E Sheikh Saleh Kamel, was re-elected as President of the Islamic

Chamber for another term (2013-2017). The Board of Directors and the General Assembly

approved the amendment of paragraph (2) of article (21) of ICCIA Statute to provide for election

of ICCIA President, for two terms of four years.. Hitherto, the tenure of the President and

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members of the Board of Directors of ICCIA is four years, subject to renewal for unspecified

terms.

Private Sector Meetings

64. The 14th

edition of Private Sector Meeting, organized by Islamic Chamber of Commerce,

Industry and Agriculture (ICCIA) was held in Sharjah, United Arab Emirates on 24-26 April

2011. A major recommendation of this meeting included the holding of a sensitization event for

the OIC Trade Preferential System (TPS-OIC) for private sector establishments in Khartoum,

Sudan at a yet-to-be-specified date. The 15th

Private Sector Meeting is scheduled to be held in

Tehran, Islamic Republic of Iran on 27-29 October 2013 .

Islamic Shipowners’ Association

65. In a recent communication, the Organisation of the Islamic Shipowners Association has

announced its impending two new initiatives; namely; the signing of a Memorandum of

Understanding with Turkish Shipbuilders’ Association (GISBIR), aimed at increasing relations

between the Association and OISA; and the signing of a Memorandum of Understanding with

Arab Academy for Science, Technology and Maritime Transport, Alexandria. These cooperation

activities will be of immense benefit to OISA member-companies in the area of marine studies,

training and designing of feasibility studies for building different type of vessels.

VIII. OIC SPECIAL DEVELOPMENT PROGRAMMES

a) Second Phase of the Special Programme for Development of Africa

66. In November 2012, the approval phase of SPDA was accomplished and the level of

funding commitments to the Programme by IDB Group reached US$ 5 billion, which is 25%

more than initial pledge of IDB Group. In addition, an amount of US$7 billion has been

mobilized from other development agencies for projects under the SPDA. Accordingly, a total of

480 projects has since been approved for financing under the SPDA in 22 OIC African member

states. Most of the projects relate to infrastructure, agriculture, industry, education, health and

financial sectors.

67. In is noteworthy that at the end of the implementation of all the projects under SPDA, the

following outcomes would have been realized, among others:

Upgrading and construction of a total of over 2500 km of roads in 13 OIC member states;

Construction of 2 new airports in Senegal and Sudan;

Generation of 900 MW of electricity in 6 OIC member states;

Construction of 700 Km of Transmission Power Lines and providing increased access to

energy for 40000 households in 3 OIC member states;

Laying of 1477 KM of Fiber Optic Cables;

Production of 200000 cubic meters of clean water a day;

Providing access to clean water for more than 50000 households;

Building and equipping of 325 new primary and secondary schools, including 1000

classrooms;

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Upgrading and construction of 11 hospitals and 123 clinics, health centers and primary

health care units;

Developing and cultivating of over 800000 hectares of land;

Construction of 8-10 strategic grain reserves;

Upgrade and construction of 5-6 Seed/Soil research laboratories, among others.

68. The consensus among member states of the OIC underscored underscored the need to

elaborate a successor programme for OIC African member states (SPDA-2), so as to sustain the

progress achieved during the implementation of SPDA. .

b) The Islamic Solidarity Fund for Development (ISFD)

69. The Islamic Solidarity Fund for Development (ISFD) has hitherto made targeted

interventions with a view to fostering sustainable economic growth and job creation, reducing

illiteracy, and eradicating contagious diseases and epidemics, such as malaria, tuberculosis and

HIV/AIDS in the OIC Member States. The Fund is currently developing its second Strategy

(2013-2015) in line with the current overarching themes in the OIC member states of poverty

alleviation and special programs such as youth employment.

70. The ISFD has so far extended financing to the tune of US$ 1.64 billion for various 43

projects in different sectors in 28 OIC Member States since its inception. As of 20 April 2013,

the level of announced capital contributions to the ISFD stands at US$ 2.68 billion, announced

by 44 member countries (US$ 1.68 billion) and the IDB (US$ 1.0 billion). The total amount of

received contributions so far is US$ 1.75 billion, of which US$ 500 million was paid by the IDB

and the rest by member countries.

71. Within the framework of the housing component of its poverty alleviation programme,

the ISFD has continued to develop its Sustainable Villages Programme (SVP) in collaboration

with the Earth Institute of Columbia University, the MDG Center in Nairobi, Arab Bank for

Development in Africa (BADEA), Qatar Red Crescent and other partners. On its part, the

General Secretariat maintains a working collaboration with the Abdul Lateef Jameel Poverty

Action Lab (J-PAL) for the implementation of the various OIC programmes and projects in the

areas of poverty eradication and social services, with the aim of identifying areas of possible

technical exchanges with OIC member states in due course. Two SVPs have already been

launched in Chad and West Darfur in Sudan. The amount approved for the programme is US$

120 million as loan, and small grants. The Fund is currently working on the next batch of

countries in the programme, including Kyrgyz Republic and Mozambique.

72. So far, the ISFD has approved financing for five Vocational Literacy Program (VOLIP)

projects for a cumulative amount of US$ 32.61 million, and the IDB has financed US$ 20.4

million, out of a total cost of US$ 71.30 million. The IDB/ISFD financing constitutes around

53% of the target US$ 100 million up to February 2013. The total financing of IDB/ISFD under

Microfinance Support Program (MFSP) is so far US$ 58.48 million, which constitutes around

58% of the target US$ 100 million up to February 2013.

73. In the same vein, the ISFD is currently working on three new programmes, namely Basic

Education for the Poor (BEP), Renewable Energy for the Poor (REP), and Social Business

Initiative. The concepts for these programmes are currently under development. The Fund is also

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setting-up specific poverty-related Trust Funds under the umbrella of the ISFD. These funds are

aimed at financing the provision of basic services to the poor, such as primary education,

primary health care, microfinance, agriculture and rural development, energy for the poor,

emergency relief, and institutional capacity building.

IX. COOPERATION WITH REGIONAL ORGANIZATIONS

74. Pursuant to the relevant provisions of the Ten Year Programme of Action on the

imperative of closer collaboration with sub-regional organisations for coordinated

implementation of OIC projects and programmes, the General Secretariat has intensified its

interface with sub-regional organisations in the following manner:

a) Intergovernmental Authority on Development (IGAD)

75. Further to an MoU signed between OIC and IGAD during the 39th

CFM in Djibouti, the

General Secretariat attended the First Meeting of General Assembly of Regional Platform on

Drought Resilience and Sustainability in Horn of Africa, which was organized by IGAD in

Addis-Ababa, Ethiopia, on 23-24 February 2013. This event provided a good platform to apprise

the IGAD member countries, development partners such as FAO, WFP, UNEP, UNDP, USAID,

KfW, AfDB, IFRC and other stakeholders on the on-going OIC programmes and projects in the

area of agriculture and food security.

76. The potential areas of cooperation between OIC and IGAD, which are being identified,

include addressing food insecurity, strengthening agricultural research and extension, and

combating desertification in common member states.

b) Economic Community of West African States (ECOWAS)

77. The General Secretariat attended the 42nd

Summit of ECOWAS Heads of State and

Government, which took place in Yamoussoukro, Cote d’Ivoire on 27-28 February 2013. The

event provided a good opportunity for both sides to identify areas of cooperation and to expedite

the conclusion of proposed MOU between the two institutions. The MOU aimed at increasing

contacts among two organizations on joint priority projects such as trade (TPS-OIC), tourism,

agriculture, rural development and food security, infrastructure development and finance and

monetary policies. ECOWAS is to serve as a strategic partner for the implementation of the OIC

West African regional project on tourism.

c) NEPAD Planning and Coordinating Agency

78. The General Secretariat has recently intensified its interaction with NEPAD Planning and

Coordinating Agency on the implementation of the OIC Dakar-Port Sudan Railway Project.

NEPAD Planning and Coordinating Agency is also involved in elaborating of a Time Table for

the execution of the OIC Dakar-Port Sudan Railway Project. Another identified area of

cooperation includes development of agriculture and enhancing food security in common

member states, particularly.

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X. ASSESSMENT AND RECOMMENDATIONS:

Intra-OIC Trade:

79. It is now obvious that the existing sub-regional economic blocs are unable to participate

in the TPS-OIC due to the constraints arising from their previous commitments. In this regard,

urgent measures must be taken to engage these countries more constructively. Already,

WAEMU’s request for an impact assessment of accession to TPS-OIC should be conducted with

adequate emphasis on the benefits that TPS-OIC will provide to WAEMU Member States. The

foregoing observation also applies to our cooperation of this issue with such regional economic

blocs as ECO, ECOWAS, ECCAS, ASEAN, COMESA, etc.

80. Given these constraints, it is advisable that OIC concentrates on consolidating non-tariff

measures, while still grappling with encouraging more members to the TPS tariff concessions

framework. Hitherto, the support of Member States is needed for new initiatives and projects

such as Aide for Trade, Single Windows modality, electronic data exchange; and modernized

custom clearance.

81. There is the need to continue on-going high level consultation with Member States on

accession to TPS-OIC including regional economic blocs, especially during Secretary General

audiences with senior policy-makers. .

82. While commending the enormous interventions made in the area of trade financing by

ITFC, ICD and ICIEC, it is apparent that Member States, Private Sector establishments and

Community Based Organizations would need to be better informed on the series of projects and

activities financed by these institutions. In this regard, an illustrative catalogue of past and on-

going projects of these OIC institutions should be widely published and distributed among OIC

Member States and relevant user institutions.

Cotton Action Plan: OIC

83. All efforts aimed at increasing the involvement of the various Centres of Excellence in

the R&D component of the OIC Action Plan on Cotton have hitherto not been significantly

successful. The project, which was submitted by Senegal has the potential of increasing the

relevance of these Centres in the entire cotton development process. Member States and their

funding agencies, including the OIC institutions are hereby enjoined to consider funding such

projects on research and development in support of the OIC Cotton Action Plan.

84. The creation of gene bank, and the establishment of a functional network among research

institutions under the aegis of the Centres of Excellence should be addressed without further

delay.

Sudan Railway Project:Port -OIC Dakar

85. The positive development on the OIC Dakar-Port Sudan Railway Project as evident in the

conclusion of the pre-feasibility studies and the declared technical support given by the United

Nations South-South Cooperation (UNSSC) should be invested upon in our attempt to speed-up

the implementation of this project.

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86. Participating Member States are hereby implored to react to the message of the General

Secretariat on the need to submit the relevant documents on their national segments on the

railway line for further action as preparations are about for the eventual convening of a donor

conference on this project.

:Tourism Sector Development

87. In spite of repeated reminders, participating Member States in the Regional Project on

Sustainable Development of Tourism in a Cross-Border Network of Parks and Protected Areas in

West Africa have not reacted positively to the request to redesign their respective projects, in

such a manner as to make them bankable.

88. The offer by the United Nations South-South Cooperation (UNSSC) to assist

participating Member States of the Regional Project on Sustainable Development of Tourism in

a Cross-Border Network of Parks and Protected Areas in West Africa in re-package their

respective national segments need to be seriously considered in order to facilitate the

mobilization of the requisite funds for the implementation of the Project.

89. Participating Member States are invited to use this window in repackaging their project in

order to enhance prospects of financing by regional and international donors. Role of Private Sector:

90. The need to follow-up the relevant resolutions on manpower exchange and technical

cooperation informed the communication by the General Secretariat on the creation of a Network

of Business and Technology Incubator and Database on Angel Investors and Venture Capital

Organizations. Hitherto, the responses from Member States and relevant agencies have been very

modest.

91. In order to facilitate the immediate take-off of this project, Member States are hereby

requested to submit their returns to the General Secretariat without further delay.

Regional Development Programmes:

92. In the interim, while successor programme of SPDA is being elaborated, it will not be out

of place to consider the rolling over the existing programme for another year or two, so that the

momentum as well as laudable achievements realized under the SPDA could be sustained. It

should be emphasized that the human capital development thrust of the SPDA should be

expanded to embrace regional interventions in the form of cross-border projects.

93. The Abdul Lateef Jameel Poverty Action Lab (J-PAL) has expressed its readiness to

collaborate with OIC to provide an evidence-based follow-up of poverty alleviation projects.

This will no doubt be beneficial to the OIC as we seek to optimize the cost benefit trade-off for

our various poverty alleviation projects under the ISFD.

94. ISFD should be encourage to develop working relationship and partnership with J-PAL

for proper institutional synergy for the implementation of its programme and projects, similar to

an existing collaboration with Earth Institute of Columbia University.

The General Secretariat

Organization of Islamic Cooperation

10 October 2013

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MEMBER STATES THAT SIGNED /RATIFIEDTHE TPS-OIC AGREEMENTS (As of 30 June 2013)

No.

Member States

Framework Agreement

PRETAS

TPS-OIC Rules of Origin

Submission of

the Documents

Signed Ratified Signed Ratified Signed Ratified

1 Bahrain √ √ √ √ --- --- √

2 Bangladesh √ √ √ √ √ √ √

3 Burkina Faso √ --- √ --- √ ---

4 Benin √ --- √ --- √ ---

5 Cameroon √ √ √ --- √ ---

6 Chad √ --- --- ---- --- ---

7 Comoros √ --- √ --- √ ---

8 Cot d’Ivoire √ --- √ --- √ ---

9 Djibouti √ √ √ --- √ ---

10 Egypt √ √ √ --- --- ---

11 Gabon √ √ --- --- --- ---

12 Gambia √ √ √ √ √ √

13 Guinea √ √ √ --- √ ---

14 Guinea-Bissau √ --- √ --- √ ---

15 Indonesia √ √ √ --- √ ---

16 Iran √ √ √ √ √ √

17 Iraq √ √ --- --- --- ---

18 Jordan √ √ √ √ √ √ √

19 Kuwait √ √ √ --- √ --- √

20 Lebanon √ √ --- --- --- ---

21 Libya √ √ --- --- --- ---

22 Malaysia √ √ √ √ √ √ √

23 Maldives √ √ --- --- --- ---

24 Mauritania √ --- √ --- √ ---

25 Morocco √ √ √ √ √ √

26 Niger --- --- √ --- √ ---

27 Nigeria √ --- √ --- √ ---

28 Oman √ √ √ √ √ √ √

29 Pakistan √ √ √ √ √ √ √

30 Palestine √ √ √ √ √ √

31 Qatar √ √ √ √ √ √ √

32 Saudi Arabia √ √ √ √ √ √ √

33 Senegal √ √ --- --- --- ---

34 Sierra Leone √ --- √ --- √ ---

35 Somalia √ √ √ √ √ √

36 Sudan √ --- √ --- √ ---

37 Syria √ √ √ √ √ √ √

38 Tunisia √ √ √ --- √ ---

39 Turkey √ √ √ √ √ √ √

40 UAE √ √ √ √ √ √ √

41 Uganda √ √ --- --- --- ---

40 30 33 16 31 15 12

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